Pakistan has signed financing agreements worth of $1.5 billion with three International Financial Institutions (IFIs) – World Bank (WB), Asian Development Bank (ABB), and Asian Infrastructure Development Bank (AIIB) – to boost anti-Covid response as well as strengthen health and education systems.
Prime Minister Imran Khan also witnessed the signing ceremony, said a PM Office press release.
This is concessional financing in the form of budgetary support which is being provided by the three IFIs to help mitigate socioeconomic impact of Covid-19 pandemic and strengthen health, education and social safety nets.
The Asian Development Bank is extending financial support of $500 million for the program with an objective to support government of Pakistan’s efforts to strengthen health system and mitigate socioeconomic impacts of the pandemic.
The Asian Infrastructure Investment Bank is extending co-financing of $500 million for the Covid-19 Active Response and Expenditure Support Program (CARES) to augment the government’s efforts to mitigate the direct and indirect impacts of the pandemic.
The scope of the CARES program covers social protection for the poor and the vulnerable, an expanded health sector response to the pandemic, and a pro-poor fiscal stimulus package to ensure recovery in growth and employment.
The third agreement titled ‘Securing Human Investments to Foster Transformation’ (SHIFT) worth $500 million aims at strengthening the civil registration and vital statistics, health and education systems essential for human capital accumulation. It will also help recognize and support the contribution of women to economic productivity and improve efficiency of the national safety nets.
Ministry of Economic Affairs Secretary Noor Ahmed signed the three loan agreements on behalf of government of Pakistan while Country Director World Bank Patchamuthu Illangovan, Country Director ADB Xiaohong Yang signed agreements on behalf of the WB, ADB, and AIIB. The disbursement of $1,500 million will be made to Pakistan in the next few days.
